Noun
(economics) a market in which control over the supply of a commodity is in the hands of a small number of producers and each one can influence prices and affect competitors
Source: WordNetOligopoly is an imperfect monopoly. Like the despotism of the Dual Monarchy, it is saved only by its incompetence. John Kenneth Galbraith
Classical economic theory assumes that a profit-maximizing producer with some market power (either due to oligopoly or monopolistic competition ) will set marginal costs equal to marginal revenue. Source: Internet
Economic profit is, however, much more prevalent in uncompetitive markets such as in a perfect monopoly or oligopoly situation. Source: Internet
For example, an oligopoly considering a price reduction may wish to estimate the likelihood that competing firms would also lower their prices and possibly trigger a ruinous price war. Source: Internet
Game theory tends to govern duopoly and oligopoly behavior. citation * Monopsony, when there is only one buyer in a market. Source: Internet
In a discussion on oligopoly research, Paul Joskow pointed out in 1975 that in practice, serious students of actual economies tended to use "informal models" based upon qualitative factors specific to particular industries. Source: Internet